Blockchain technology is usually associated with crypto currency transactions as it is a more secure
Blockchain and Cyber Security:
Opportunities and Challenges
Blockchain technology is usually associated with crypto currency transactions as it is a more secure and reliable method of sending protected, secure transactions. However, many entrepreneurs are not aware the blockchain technology can also be used for secure business purposes to send protected, more secure communications that are more secure than traditional networks.
Cybercriminals are increasing the frequency of cyber-attacks by advancing their knowledge and benefitting from new technologies. Their use of AI, machine learning, and botnets enables them to carry out cybercrimes more effectively, resulting in more extensive and significant harm. Therefore, traditional cyber solutions alone are often insufficient to meet modern cyber security challenges.
In this article, we will discuss the opportunities and challenges that comes with blockchain and cyber security.
How Cyber Security Impacts Blockchain Technology
Cyber security is built into blockchain technology as it has the inherent nature of being a decentralised system built on principles of privacy, security, and trust.
Additionally to transparency, enhanced security, and cost-efficiency, it is quick. Data on blockchain network is easily delivered in real-time, making it a valuable asset to anyone who is willing to track their assets and view transactions end to end, such as accounts, orders, and payments.
It is crucial to note that viewing transmissions or transactions may be instant, however, due to data encryption and serialization processes, each data record can be slow to upload as compared to usual data networks.
Blockchain inherent cyber security advantages include the following:
What Are Blue Cyber Security Teams?
A blue cyber security team is the defensive, proactive side of cyber security equation. They are accountable for defending a company’s system and data cyber-attacks during cyber security monitoring stimulation. Usually, these are the most typical types of folks to work in house at an organisation. Also, it is not out of the blue for a red team to be outsourced by companies to put blue team’s responses to test.
Blue teams act as the company’s security personnel, constantly monitoring systems for suspicious activity and implementing defensive measures to prevent cyber-attacks. It is blue team’s responsibility to identify and patch vulnerabilities in networks and systems to reduce/minimise the attack surface.
By collaborating with red team, both teams assist organisations strengthen their overall cyber security posture.
Strong Encryption Practices:
Blockchain networks employ digital signatures and encryption effectively, using the public infrastructure for:
Final Thoughts
While it’s possible to have a cyber security teams without distinct red, blue, and purple functions, integrating all three creates a powerful synergy that significantly fortifies an organization’s defenses.
Red teams simulate attacks to expose vulnerabilities before real threats can exploit them. Blue teams are the vigilant protectors, implementing safeguards, monitoring for suspicious activity, and swiftly responding to incidents. Purple teams, acting as the bridge between the two, foster a comprehensive view of the organization’s security landscape, continually refining strategies through insights gained from realistic attack scenarios.
When these teams work in harmony, they form an unbeatable shield against evolving threats.
- Securing communication
- Validating configuration modifications
- Authenticating devices
An infrastructure of asymmetric digital signatures and cryptographic keys is usually the core to blockchain technology, offering verification of data integrity and data ownership. In few cases, these elements removes the need for passwords, an attack vector via which cybercriminals repeatedly gain unauthorised access to network and accounts.
IoT Protection:
With boosting application in different industries, Internet of Things devices are usually targeted by cyber attackers due to their inherent vulnerabilities. Blockchain technology provides an extra layer of additional protection for those using IoT devices.
Data Privacy:
Even though transparency is the prime benefit of utilising blockchain, with every use able to see immutable transactions, a permissioned blockchain network will only permit trusted networks to provide or view in transactions. This can be easily achieved with minimal governance.
Decentralisation:
blockchain practices distributed record system instead of relying on a single trusted central authority. By using DLT (Distributed Ledger Technology) transactions are swiftly recorded across every network node, letting cybercriminals face challenges viewing, stealing, or even modifying data.
Blockchain And Cyber Security Challenges
While blockchain technology provides substantial advantages, how it aligns with cybersecurity requirements and business needs remains uncertain.
Regulatory Challenges
A fundamental feature of blockchain is the immutability of transactions, meaning they cannot be altered or deleted. When adopting blockchain solutions, it’s vital to prioritise compliance and regulatory adherence. Organisations must ensure they can meet regulatory standards while leveraging blockchain.
Scalability
Due to blockchain’s decentralised nature, every transaction must be verified across all nodes, which can create bottlenecks as transaction volume increases. This challenge with block sizes and validation speed is a key reason why larger enterprises have been slow to adopt blockchain. The additional layers of security and verification, while beneficial, also result in slower processing compared to traditional systems.
Access Control
In the blockchain model, the responsibility of asset management falls entirely on the owners of digital assets. Losing a private key means those assets are permanently lost and unrecoverable.
Should a malicious actor steal cryptographic keys, they can gain unauthorised access to digital assets, which, once taken, cannot be recovered by their rightful owners.
Weak Encryption
Encryption is a vital defence against cyber-attacks but is not infallible. Man-in-the-middle attacks, where transmissions are intercepted and potentially altered, remain a threat under certain conditions, such as:
- Weak cryptographic keys
- Use of incorrect keys
- Insufficient encryption strength
- Errors in verifying digital signatures or certificates
Final Words
Blockchain technology offers numerous advantages, particularly in enhancing cybersecurity through decentralisation, strong encryption, and IoT protection. Its ability to provide transparency, secure data transmissions, and protect privacy makes it a valuable asset for secure business communications. However, blockchain has its own set of challenges.
Issues such as regulatory compliance, scalability, access control, and weak encryption practices highlight the complexities of integrating blockchain into broader cybersecurity strategies.
While blockchain holds significant promise for improving security, it is essential for organisations to address these challenges, ensuring they can fully leverage the technology without compromising compliance or operational efficiency.